Paradeep Phosphates Ltd’s IPO will open on May 17. The price-band of the offer has been fixed at ₹39-42 per share of face of ₹10 each. Bids can be made for a minimum of 350 equity shares.
The issue offer comprises fresh issue of equity shares aggregating to ₹1,004 crore and offer for sale (OFS) up to 118,507,493 equity shares by promoters and government , the company said.
The OFS comprises of up to 6,018,493 equity shares by Zuari Maroc Phosphates Pvt Ltd and up to 112,489,000 equity shares by the President of India, acting through the Ministry of Chemicals and Fertilisers.
Fund utilisation
The company intends to utilise net proceeds from the fresh issue towards part-financing the acquisition of the Goa facility; repayment/prepayment of certain borrowings; and for general corporate purposes.
Zuari Agrochemicals Ltd (ZACL) had, in February last year, announced the sale of its fertiliser plant and the associated businesses at Goa to Paradeep Phosphates for an enterprise value of $280 million (approximately ₹2,050 crore).
Enhance production
The company is looking to enhance production capacity of its non-urea fertilisers including di-ammonium phosphate (DAP) and NPK (Nitrogen-Phosphorus-Potassium) by nearly 50 per cent to 1.8 million tonnes (mt) from the present 1.2 mt through de-bottlenecking at its existing unit at Paradeep in Odisha.
With the acquisition of the Goa plant, the total capacity would be doubled to around 3 mt in the next two-three quarters, Sabaleel Nandy, President and COO, Paradeep Phosphates, said in a virtual press conference on Thursday.
Paradeep Phosphates is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilisers such as DAP, three grades of NPK (namely NPK-10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (HFSA).
The equity shares offered in the offer are proposed to be listed on both the BSE and NSE. Axis Capital Ltd, ICICI Securities, JM Financial and SBI Capital Markets are the book-running lead managers to the offer.